Current · Source: Reserve Bank of India · RBI/2021-22/50 · issued 07 Jun 2021 · ~2 min read
Quick answerRBI now allows FPIs and custodian banks up to three hours after market close to report OTC government securities trades to NDS-OM, easing earlier same-day deadlines. Domestic counterparties must still report as before, with CDSL handling dissemination.
The rule, in the simplest words
FPIs (foreign investors) and their custodian banks (banks that hold their securities) now have 3 hours after the market closes to report their government bond trades to NDS-OM (the official reporting system).
Domestic banks and other local traders must still report their trades to NDS-OM by the end of the trading day, just like before.
When a domestic bank reports a trade with an FPI, it must add a special note (qualifier) saying the trade is waiting for the FPI to confirm.
CDSL (a company that shares trade information) will share the trade details once the domestic bank reports its side with that special note.
How it plays out — a real example
A treasury officer in Indore, Priya, trades government bonds with an FPI client. She reports her side of the trade to NDS-OM before market close, adding a qualifier that the FPI hasn't confirmed yet. The FPI's custodian bank then has 3 hours after market close to report its side, giving everyone breathing room to avoid settlement delays.
What changed
Previously, all OTC G-sec trades had to be reported to NDS-OM by end of trading day. Now, FPIs and their custodian banks get a three-hour window after market close to report. Domestic counterparties continue reporting as per existing rules, and CDSL will disseminate trade info once one leg is reported with a qualifier.
What it means for you
This gives FPIs and custodian banks more operational breathing room for post-trade reporting, reducing settlement risk from tight deadlines. For domestic banks, no change in reporting obligations, but they must use a qualifier when reporting FPI trades to indicate pending counterparty confirmation. Overall, smoother FPI participation in G-sec markets.
What you must do
Ensure domestic counterparties continue reporting OTC G-sec trades to NDS-OM as per existing practice.
When reporting trades with FPIs, add the required qualifier to indicate the trade awaits counterparty confirmation.
Coordinate with custodian banks to align on the new three-hour post-close reporting window for FPI trades.
Review CDSL operational guidance for any additional steps or system changes.
Who it affects
Foreign Portfolio Investors (FPIs), Custodian banks, Domestic counterparties trading G-secs with FPIs, All participants in the Government securities market
❓ Common questions
What is the new reporting timeline for FPI G-sec trades?
FPIs and custodian banks must report OTC trades in government securities to the NDS-OM platform within three hours after the close of trading hours for the G-sec market.
Do domestic counterparties have any new reporting requirements?
No, domestic counterparties continue to report as per existing practice. However, when reporting trades with FPIs, they must use a qualifier to indicate the trade is awaiting counterparty confirmation.
When does this direction take effect?
The direction comes into effect from June 14, 2021.
📜 Read the original circular — full text as issued by RBI
RBI/2021-22/50
FMRD.FMID.No.05/14.01.006/2021-22
June 7, 2021
To
All participants in Government securities market
Madam/Sir,
Transactions in Government securities by Foreign Portfolio Investors: Reporting
Over the counter (OTC) transactions in Government securities (including State Development Loans and Treasury Bills) undertaken by market participants other than on the Negotiated Dealing System – Order Matching (NDS-OM) platform are required to be reported to the ‘NDS-OM’ platform for settlement.
2. Based on the feedback received, it has been decided to provide operational flexibility for reporting of such transactions undertaken by the Foreign Portfolio Investors (FPIs) in Government securities, as under.
FPIs/custodian banks shall report their transactions to the NDS-OM platform within three hours after the close of trading hours for the Government securities market.
Information about trades undertaken by domestic counterparties with FPIs shall be disseminated by the Clearcorp Dealing Systems (India) Ltd. (CDSL) after one leg of the trade is reported on the NDS-OM platform by the domestic counterparty with a suitable qualifier to indicate that the trade is awaiting counterparty confirmation.
Domestic market participants, including domestic counterparties to transactions with FPIs, shall continue to report transactions to the NDS-OM platform as per extant practice.
3. Necessary operational guidance in this regard shall be issued by CDSL.
4. These Directions are issued under the powers vested in the Reserve Bank of India under Section 45W of the Reserve Bank of India Act, 1934 and are without prejudice to permissions/ approvals, if any, required under any other law.
5. The Directions shall come into effect from June 14, 2021
(Dimple Bhandia)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/50 · issued 07 Jun 2021. The plain-English explanation above is BankPulse’s own independent summary.
Ensure domestic counterparties continue reporting OTC G-sec trades to NDS-OM as per existing practice.
When reporting trades with FPIs, add the required qualifier to indicate the trade awaits counterparty confirmation.
💻 IT / Systems
Review CDSL operational guidance for any additional steps or system changes.
📜 Compliance
Coordinate with custodian banks to align on the new three-hour post-close reporting window for FPI trades.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (Foreign Portfolio Investors (FPIs), Custodian banks, Domestic counterparties trading G-secs with FPIs, All participants in the Government securities market), your first concrete step on “FPI G-Sec Trade Reporting: New NDS-OM Timeline” is: “Ensure domestic counterparties continue reporting OTC G-sec trades to NDS-OM as per existing practice.” (RBI issued this 07 Jun 2021).
Circular: RBI/2021-22/50 -- FPI G-Sec Trade Reporting: New NDS-OM Timeline
Issued: 07 Jun 2021
Action required: Ensure domestic counterparties continue reporting OTC G-sec trades to NDS-OM as per existing practice.
Action required: When reporting trades with FPIs, add the required qualifier to indicate the trade awaits counterparty confirmation.
Action required: Coordinate with custodian banks to align on the new three-hour post-close reporting window for FPI trades.
Action required: Review CDSL operational guidance for any additional steps or system changes.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12109&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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